a government bond that is repaid within two to ten years
Treasury Note
an expense that changes from month to month like your food spending or gas spending
Variable Expense
tracks the prices of 500 different stocks as a measure of overall stock market performance
S & P 500
ratio of money gained or earned on an investment
Return on Investment (ROI)
A policy designed to cover property that floats, or moves, from location to location.
Floater
a stock market with declining stock prices
Bear Market
A GOLDEN RULE of personal finance. Put a portion of your paycheck into savings/investments before any other spending.
Pay Yourself First
Share of Ownership in a Corporation
Stock
spreading out investments to reduce risks
diversification
A government bond that is repaid within three months to a year.
Treasury Bill
a savings account you can access quickly to pay for unexpected expenses or emergencies, usually equal to 3-6 months of your salary
Emergency Fund
fund that pools the savings of many individuals and invests this money in a variety of stocks, bonds, and other financial assets
Mutual Fund
a plan for making and spending money
Budget
America's largest electronic stock market. Many technology stocks such as Apple, Microsoft, and Yahoo are traded on this stock exchange
NASDAQ
the ease with which an asset can be converted into cash
liquidity
a period of rising stock prices
Bull Market